Germany lost on World Cup penalties for the first time in their history as Paraguay delivered a shock shootout win.Germany, ranked 12th in the world, had dominated much of the first half against Paraguay, ranked 33rd without creating many chances but fell behind when awful defending left Julio Enciso unmarked on the penalty spot to head in. That made it a record ten World Cup games in a row they have conceded a goal for Germany.Paraguay left Julian Nagelsmann’s side waiting out on the pitch for a few minutes before emerging in the second half at Gillette Stadium where temperatures had hit 84F 29C. Nine minutes after the match did restart, Germany levelled through a Kai Havertz header.Since winning the World Cup final in 2014, Germany had not won a knockout game and this was the first match of this tournament to go to extra time.Germany thought they had taken the lead in the first-half of extra time only for Jonathan Tah’s header to be controversially ruled out by referee Jalal Jayed after a VAR review as Paraguay, who were beaten 4-1 by the USMNT in the group stage, took the game to penalties.Germany had scored each of their past 15 penalties at a World Cup but Orlando Gill saved Havertz’s first and Mauricio scored for Paraguay to put them ahead.Gill pounded his gloves together before Joshua Kimmich rolled in for 1-1, but Gustavo Gomez made it 2-1.Jamal Musiala put his penalty past a dancing Gill before Matías Galarza rolled in for 3-2 and then Gill saved from Nick Woltemade.Antonio Sanabria could have won it but shot wide, then Nadiem Amiri made it 3-3 and Manuel Neuer saved from Fabian Balbuena in an extraordinary twist.Tah, whose header had been disallowed remember, then blazed over the bar for Germany and Jose Canale blasted in the winner.It is the fourth-biggest knockout shock by rankings since they began in 1992.Here The Athletic's Sebastian Stafford-Bloor, Jordan Campbell, Matt Slater and refereeing expert Graham Scott break down the key talking points.How did Germany fail on penalties?You know how the saying goes: “Football is a simple game — you play for 120 minutes and then the Germans win on penalties.”Not anymore they don’t.Germany lost their first World Cup shoot-out after Kai Havertz, Nick Woltemade and Jonathan Tah all missed.Paraguay blew two chances to win it when Antonio Sanabri put his shot wide and Manuel Neuer saved from Fabian Balbuena but Tah blasted his kick miles over the bar.Centre-back Jose Canale, outstanding alongside his captain Gustavo Gomez, made it third time lucky. He sent Neuer the wrong way and Paraguay into dreamland.Having won their previous four penalty shootouts, this was a crushing way for Germany to go out.This is their football heritage, and it felt it may be going that way when they came back from the brink. In the end, they lost at their own game.Jordan CampbellWhat went wrong this summer?A catastrophe for Germany. They may have technically got out of the group stage this time, but this is every bit the failure that they suffered in 2018 and 2022. The ramifications will be as severe, so will the treatment at the hands of the press and the ex-players from the past, who are afforded such loud voices on television.Sure, there will be complaints about the VAR intervention and those will have merit, but Germany did not play well enough to advance and left themselves at the mercy of a penalty shootout. What an indignity for them, too, that they should lose that way, after so many nerveless successes.